“Vulnerable” U.S. Economy Concerns IMF

Vulnerable” U.S. Economy Concerns IMFAt the close of last week, the International Monetary Fund (IMF) revealed that it had strong and varied concerns over the current state of the U.S. economy. Christine Lagarde, the IMF’s Managing Director, said she considered there to be few “tangible signs of wage or price inflation”, with the economy itself showing clear “pockets of vulnerability.” Furthermore, and somewhat surprisingly, Ms. Lagarde suggested to the Federal Reserve that they delay any rises in interest rates until next year.

Following on from the news that the economy actually shrank during the first quarter by 0.7%, she also spoke about the current over-valuation of the U.S. dollar. “Continued over-appreciation is a potential risk,” Ms. Lagarde stated.

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